In a major setback to Deccan Chronicle Holdings Ltd. (DCHL), the Bombay High Court on Thursday quashed an arbitrator’s order, which had given a fresh lease of life to IPL team Deccan Chargers.
The court also refused to grant interim relief to the company, which had requested a stay on the termination order of the Board of Control for Cricket in India (BCCI) besides seeking extension to furnish Rs.100-crore bank guarantee to keep the IPL team alive.
Now for the BCCI, the termination of Deccan Chargers’ franchise stands.
However, the court said the legality of the termination would be decided by the arbitrator.
“The arbitrator had no jurisdiction to grant status quo. On the same day [October 12], the High Court had denied extension to DCHL to furnish the bank guarantee as directed on October 1,” the court said, adding that the arbitrator could not pass an order overriding the High Court’s direction.
“Now there is no stoppage to the auction of the team [Hyderabad],” said a lawyer asking not to be named.
DCHL is yet to decide on its next course of action.
Reacting to the development, DCHL stock plunged by 4.73 per cent to close at Rs. 8.67. On September 15, the BCCI terminated Deccan Chargers franchise for not meeting its financial obligations, and DCHL had moved the Bombay High Court seeking relief.